Atlantic Philanthropies' Report Examines the Effectiveness of the Limited-life Approach
Limited-life foundations are based on the premise that if a foundation’s grants generate a social return, and that return compounds at a higher rate than its financial assets would, then making the grants sooner generates more social value than preserving the capital and making more grants later — but how would we know, asks a report from the Atlantic Philanthropies, whether, or when, this is true?
The report, Value, Time, and Time-Limited Philanthropy (25 pages, PDF), highlights discussions among philanthropic leaders, advisors, and scholars about the social value a philanthropic initiative can be estimated to generate — taking into account direct outlay, social value, ripple effects, and durability — and whether, considering social utility, rates of return, and the compounding or erosion of value over time, the premise holds true for three Atlantic Philanthropies-funded initiatives...